Life insurance sector records single-digit growth in 2020- LIAM

KUALA LUMPUR, May 17 -- Malaysia’s life insurance sector recorded moderate single-digit growth in total in-force business in 2020, despite the challenging business landscape due to the COVID-19 pandemic. 

Life Insurance Association of Malaysia (LIAM) president Loh Guat Lan said total in-force premiums increased 5.3 per cent year-on-year (y-o-y) to RM43.4 billion in 2020 from RM41.2 billion in 2019, while the total sum assured in force grew 4.3 per cent y-o-y to RM1.7 trillion in 2020 from RM1.6 trillion previously.

“The total number of policies in force also recorded a marginal growth of 0.9 per cent to RM12.8 million units in 2020 from 12.7 million units in 2019,” she said in LIAM’s annual report 2020 released today.

However, Loh said new business total premiums declined 3.2 per cent y-o-y to RM11.4 billion in 2020 against RM11.7 billion in 2019.

She said new business sum assured also slipped 7.2 per cent to RM437.2 billion in 2020 versus RM471.3 billion in 2019, and the number of new policies also shrank 7.1 per cent to 1.2 million units from 1.3 million units previously.

LIAM represents 14 life insurance companies and two reinsurance companies.

Meanwhile, the association noted that total claims payout in 2020 declined 3.1 per cent y-o-y to RM11.6 billion from RM11.9 billion in 2019. 

It said payment for disability and others recorded an increase of six per cent y-o-y and 13 per cent y-o-y, respectively.

Meanwhile, payment for medical claims declined 8.7 per cent y-o-y to RM4.5 billion, accounting for 39 per cent of the total claims’ payout in 2020.

It added that payment for bonuses, which fell 4.2 per cent to RM3.5 billion, constituted 30 per cent of the total claims’ payout in 2020. 

On the outlook for 2021, LIAM said the industry is very positive about its performance in the coming months with the resumption of more economic activities and the recovery path for the people and Malaysian economy following the National Immunisation Programme rollout.

“Barring unforeseen circumstances, the industry expects a high single digit growth in 2021,” it said.

-- BERNAMA